Before the arrival of May, Binjiang Group released its 2023 annual report card.
In 2023, Binjiang achieved an operating income of 70.443 billion yuan, a year-on-year increase of 69.73%, and a net profit attributable to the parent company of 2.529 billion yuan, which remained generally stable.
As of the end of the reporting period, Binjiang's total assets were 290.032 billion yuan, and the net assets attributable to shareholders of listed companies were 25.302 billion yuan, an increase of 5.01% and 7.5% respectively from the end of the previous year.
In addition, as of the end of 2023, Binjiang's unsettled pre-received housing payments are about 143 billion yuan, an increase of 9.73% from the beginning of 2023.
On the same day, Binjiang also released its financial data for the first quarter of 2024, with full growth in basic financial data, operating income of 13.7 billion yuan, a year-on-year increase of 35.85%, and net profit of 660 million yuan, a year-on-year increase of 17.84%.
Data is growing positively
Further observation of Binjiang's 2023 performance shows that most of the data maintained positive growth, while net profit showed a downward trend, and the decline was mainly due to the increase in the decline in the price of inventory in the current period.
According to the data, in 2023, Binjiang will make a provision for bad debts and credit losses of 527 million yuan according to the credit risk characteristics of receivables, and 3.78 billion yuan for inventory decline according to the lower of the cost of inventory and net realizable value, and it is estimated that Binjiang will make a total of 4.307 billion yuan for asset impairment.
From this point of view, affected by the provision for asset impairment, Binjiang's net profit was reduced by 2.175 billion yuan, and if the impact is excluded, Binjiang's net profit attributable to the parent company in 2023 can achieve positive growth.
In 2023, Binjiang will achieve sales of 153.47 billion yuan, basically the same as the previous year, and the annual cash return from equity sales will reach 73.2 billion yuan, setting a record high for Binjiang's current equity sales amount.
As of the end of the reporting period, its equity interest-bearing liabilities were 36 billion yuan, down 11 billion yuan from the end of the previous year, and the scale of consolidated interest-bearing liabilities was 41.518 billion yuan, down 12.027 billion yuan from the end of the previous year, of which bank loans accounted for 79.8% and direct financing accounted for 20.2%.
It is worth noting that Binjiang's asset-liability ratio after deducting advance receipts was 56.41% and the net debt ratio was 15.08% during the reporting period. In terms of debt maturity composition, short-term debt is 13.507 billion yuan, accounting for only 32.53%, which is lower than the monetary funds at the end of the period (32.704 billion yuan), and the new media also noted that at the end of 2023, Binjiang's cash short-term debt ratio is 2.42 times, which can still cover short-term debt.
From the perspective of financing costs, Binjiang's average financing cost has been declining in the past three years, from 5.2% in 2020, 4.9% in 2021, and 4.6% in 2022, and by the end of 2023, this data has dropped to 4.2%, a decrease of 0.4 percentage points from the end of the previous year.
It is also reported that as of the end of the reporting period, Binjiang has received a total of 121.723 billion yuan of bank credit, an increase of 2.86% over the end of the previous year, 40.145 billion yuan of credit line has been used, and the remaining available amount is 81.578 billion yuan, accounting for 67% of the total line.
In terms of the available quota for direct financing, Binjiang has been approved for 1.552 billion yuan of unissued corporate bonds, 4.9 billion yuan of unissued short-term financing bonds and 3.5 billion yuan of medium-term bills have been registered. According to Binjiang's annual report, it can be issued at an opportune time according to capital needs and market conditions.
Viewpoint New Media also noted that as early as June 2020, United Credit Rating Co., Ltd. upgraded the company's main credit rating from AA+ to AAA, which is also reflected in the current market environment, Binjiang's asset quality, operating conditions, and operating style have been highly evaluated in the inspection of market rating agencies and financial institutions, and the AAA credit rating can also create more opportunities for Binjiang's future financing actions.
Insisting on doing certain things in an uncertain market, Binjiang's goal in 2024 is very simple and secure, with sales accounting for 1% of the total scale of the industry, and the amount of land reserve investment controlled within 40% of the equity sales proceeds. In terms of regional layout, Binjiang will also focus on Hangzhou, deeply cultivate Zhejiang, and focus on Shanghai outside Zhejiang Province.
In terms of financing, it continued to maintain stability, the scale of equity interest-bearing liabilities remained stable, and the scale of one-year direct financing was controlled within 4 billion yuan.
Binjiang also specifically mentioned in the annual report that the comprehensive financing cost in 2024 will be reduced to 4% from 4.2% at the end of 2023, and strive to reduce it to less than 4%.
It will also continue to expand the agency construction business, according to Binjiang, and strive to add 5 to 10 new agency construction projects this year.
Robustness is the keyword
During the Reporting Period, Binjiang added 33 new land reserve projects, including 1 in Ningbo, 1 in Nanjing, 2 in Huzhou, 2 in Jinhua and 27 in Hangzhou, further consolidating Hangzhou's market share. During the reporting period, the total construction area of new projects was 3.33 million square meters, and the equity land amount was 25.6 billion yuan.
In terms of leasing business, as of the end of the reporting period, Binjiang held approximately 377,800 square meters of office buildings, commercial podiums, community floor shops and apartments for rent, with rental income of RMB358 million and a book value of RMB8.58 billion at the end of the reporting period.
Viewpoint New Media also noticed that since the restart of the agency construction business segment, this company with stability as the key word is continuing to export its brand to further supplement its development business.
In addition, in the practice of building a common prosperity demonstration zone, Zhejiang took the lead in proposing to create a business card for the elderly of "Zhejiang Health Care", and the local private enterprise Binjiang has also paid special attention to the development of the elderly care business in recent years.
In addition to the pension business, Binjiang Group's deep cultivation strategy in Hangzhou, its home base, is also reflected in the annual report. According to the annual report, Binjiang Group's branch revenue in Hangzhou was the highest, reaching 45.9 billion yuan, accounting for 65.17% of the total revenue, while Ningbo, Jinhua, Wenzhou, Nanjing, Jiaxing, Suzhou, Huzhou and Taizhou accounted for 6.97%, 6.32%, 5.12%, 4.12%, 4.04%, 3.81%, 3.57% and 0.6% of the total revenue respectively.
In Hangzhou, Binjiang Group is also continuing to increase its position. During the reporting period, Binjiang Group added 33 new land reserve projects, of which 27 were located in Hangzhou. As of the end of the Reporting Period, Hangzhou accounted for 60% of Binjiang Group's land bank, 25% of the non-Hangzhou cities in Zhejiang Province, including Ningbo, Jinhua, Huzhou, Jiaxing and other second- and third-tier cities with solid economic foundations, and 15% outside Zhejiang Province.
Guandian New Media also noted that 21 of the 38 projects pre-delivered by Binjiang in 2024 are located in Hangzhou, of which, in the first quarter of 2024, Binjiang Group's central market and products in Hangzhou, as well as the twin stars Bintao Yingyue and Wangtao Yueming in the northern region of the city, also took the lead in completing the smooth delivery.
It is not difficult to see that in the face of the changing market situation and policies, Binjiang has not stopped moving forward, and said in its annual report: "It will always adhere to the steady and safe business strategy, reasonably control the level of interest-bearing liabilities, continue to maintain the 'three green lines', and retain the margin of safety." "In Binjiang's strategy, we should choose excellent cities, excellent locations and excellent partners, unswervingly give full play to our core competitiveness, and continuously improve our product strength and management capabilities, so that we can continue to develop safely and steadily in the new round of challenges.